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Mrs. Jones purchased a government bond on September 20, 2014, with a face value of 1,000 and an annual coupon rate of 7% that is
Mrs. Jones purchased a government bond on September 20, 2014, with a face value of 1,000 and an annual coupon rate of 7% that is paid semiannually on April 20 and October 20 of each year. Calculate the accrued interest and clean price on June 15, 2017 if the government bond matures on October 20, 2020 and the (nominal) annual required bond is 6% (assuming semiannual compounding).
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